Geography
NC IDEA SEED grants are specifically targeted at companies headquartered in and that conduct a majority of corporate operations in the State of North Carolina. All publicly facing materials, including website, social media, and other marketing materials and channels should identify the business as a North Carolina company. Selected companies must agree to maintain the majority of corporate operations in the State of North Carolina for at least the 12-month period following completion of the grant.
Industry and Company Type
NC IDEA SEED grants are awarded to innovative companies with proprietary intellectual property or other means of sustained competitive advantage that are solving large problems.
Companies with high capital requirements and a long runway to commercialization, such as pharmaceutical companies, are not eligible. Other companies that are considered out of scope and not eligible for grant funding include event venue and management companies; traditional staffing agencies; traditional publishing companies; consulting practices or agencies; training companies; tv/film production companies; distributors; franchises; resellers; local, service-oriented small businesses (i.e. restaurants, retail stores); trucking, hauling, and freight and other “lifestyle” companies; and not-for-profits. Also excluded are businesses that are illegal in NC, even if legal in other states or countries.
Market Opportunity
NC IDEA SEED grants are awarded to companies addressing large, rapidly growing market opportunities, with a unique value proposition, and on a path to become a multi-million dollar company or receive institutional investment, such as venture capital (VC) and private equity, within 3-5 years.
Stage of Development
Companies have demonstrated proof of concept (existence of a problem, market readiness and an MVP) and are prepared to leverage a $50K grant to scale the business.
Revenue
Competitive applicants are generating revenue or are on a path to achieve initial revenue during the grant period. Companies that have revenue exceeding $250K, or $500K for food and beverage companies, in the last 12 months for their startup are less likely to be considered.
SEED Grant Recipients: Last 12 Months Revenue at Time of Application
- Consumer Products – Food and Beverage
- Average: $166K
- Revenue-Generating: 100%
- All Other Consumer Products
- Average: $108K
- Revenue-Generating: 100%
- All Other Business Categories
- Average (for companies generating revenue): $60K
- Revenue-Generating: 70%
Team
Applicants must have at least one full-time founder living in NC. It is preferred that all founders live in NC. NC IDEA defines a full-time founder as one who works 40+ hours a week on their startup and does not spend more than 15 hours a week, either 1) working at another company; 2) working at a different startup run by the founder(s); or 3) on school-related activities (including class time and homework).
Prior Investment
Our funding is intended to help early stage companies accomplish specific milestones that demonstrate to investors and other funding sources that the company has high growth potential. Therefore, companies that have received greater than $250K in equity investment or over $1M in non-dilutive grant funding at the time of applying are less likely to be considered. We do however, consider founder and “friends and family” funding differently, and such funding will not negatively impact consideration.
Impact of Grant
Since NC IDEA has two SEED grant cycles every year, NC IDEA and its reviewers assess the timing and impact for each company to receive $50K and leverage NC IDEA’s support during a specific grant cycle.
Competitive applicants will clearly describe how SEED funds will be used to achieve measurable milestones during the grant period to move the company to a stage where it could raise institutional investment, such as venture capital (VC) or private equity, win grants, or increase revenue to ensure its continued growth and sustainability.
